Emmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
After Falling 8% in 2018, Silver Price Expected to Rebound
Silver averaged $15.71 last year but is expected to rise to nearly $17 an ounce this year, Refinitiv said.
New York—The price of silver is expected to climb this year after dropping nearly 8 percent last year, an analyst said Thursday at the release of The Silver Institute’s World Silver Survey 2019.
According to the survey, the average per-ounce price of silver fell by 7.8 percent to $15.71 in 2018, with prices ranging from $13.97/ounce to $17.52/ounce. The main factor impacting the silver price was the trade dispute between the United States and China, which strengthened the U.S. dollar and dragged down metal prices.
This year, Refinitiv (the new name for Thomson Reuters’ financial and risk business) predicts silver will average $16.75 an ounce, Lead Metals Analyst Johann Wiebe said.
“Silver has been lagging gold prices for a quite a while and we feel it has some catching up to do,” Wiebe explained in an email following the event. “On top of that, we expect a more favorable investment climate this year and next. This is mainly driven on a weaker macro-economic climate in the U.S. as well as China.”
In general, this is good for gold because it is so heavily investment focused, but silver will benefit too, Wiebe said. He also noted that a weaker U.S. dollar will contribute to driving the prices of all precious metals higher this year.
The GFMS team at Refinitiv researches and produces the survey for The Silver Institute, which, in addition to price, covers supply and demand for silver in investment, industrial fabrication and jewelry.
Jewelry Demand Climbs
The survey shows that globally, silver jewelry fabrication demand increased 4 percent year-over-year in 2018 to 212.5 million ounces.
While India was the standout performer—demand there rose 16 percent—the U.S. also recorded solid silver sales, with demand increasing 7 percent to hit an all-time high of 17.4 million ounces.
Wiebe said retailers in the U.S. are “still keen” to stock their cases with silver jewelry, as it generates profit margin and gives them something to offer women looking to buy a piece of jewelry for themselves for $500 or less.
However, the survey noted that
Silver jewelry also is not immune to the one of the biggest challenges currently facing all jewelry, be it gold, diamond or gemstone: How and where do jewelers and brands connect with younger consumers?
“The difficult bit is to get ahold of the millennials today,” Wiebe said in his presentation Thursday. “How do you reach the millennials? They are constantly online.”
The results of the World Silver Survey support the findings of the annual survey the Silver Promotion Service, the Silver Institute’s marketing arm, does in concert with InStore magazine.
Released last month, the SPS/InStore survey for 2018 showed that 52 percent of U.S. retailers saw silver sales increase year-over-year. The category also continues to generate the best profit margin for jewelers, with 40 percent indicating it was their top money-maker over the holiday season.
Meanwhile, Refinitiv said overall silver demand rose 4 percent to 1.03 billion ounces last year, fueled mainly by the recovery in retail investment, including the 53 percent jump in demand for silver bars.
The increase in demand was particularly pronounced in India, where silver bar demand more than doubled, rising 115 percent.
Supply Remains Tight
Global mine supply fell for the third consecutive year, slipping 2 percent to 855.7 million ounces following supply disruptions in the U.S., Canada and Guatemala.
Output dropped 17 percent in the U.S. due mainly to several issues at Americas Silver Corp.’s Galena operations, where the mine shaft was shut for more than two weeks. Operational issues also plagued Canada, with production falling 32 percent after a fire in the smelting facility and continuous maintenance problems at Teck’s Trail operation.
Offsetting those losses was record output in Mexico, which remains the No. 1 producer of silver in the world. The country’s 2018 output totaled 196.6 million ounces, followed by Peru (144.9 million ounces) and China (114.9).
The U.S. ranked as the ninth largest producer of silver in the world in 2018, with production totaling 28 million ounces, while Canada was No. 11 at 24.8 million ounces.
Silver scrap supply also fell by 2 percent year-over-year, due mainly to lower suppliers discouraging suppliers and consumers from recycling silver.
The rising demand and shrinking supply resulted in a physical market deficit of 29.2 million ounces, which is about 3 percent of annual demand and considered a balanced market.
The Latest
Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.
With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
A 203-carat diamond from the alluvial mine in Angola achieved the highest price.
Ruser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
The “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
The overhaul includes a new logo and enhanced digital marketplace.
A new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
Last month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
From now through mid-May, GIA will be offering the reports at a 50 percent discount.
De Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Sponsored by the Las Vegas Antique Jewelry & Watch Show
The Patek Philippe expert will serve as personal curator for the brand-focused company.
The 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
NDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
LVMH said the company performed well despite an uncertain geopolitical and economic environment.
B&D Sales and Service held a ribbon-cutting event for its new location in Cranston, Rhode Island.
It’s ultra-feminine and filled with gold, pearls, and soft pastels.
Emily Highet Morgan and Emily Bennett have joined the agency’s team.
Its updated book for mountings is also now available.
She has been with the organization since 2010, most recently serving as its chief officer of PR and industry relations.
Joyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.
He is remembered by loved ones for his loyalty, integrity, and kindness.